Pages

Weekly Loyal3 Purchases

Last month I started a new portfolio with Loyal3. Loyal3 is a new brokerage that allows you to make purchases with no commission costs. That's right, fee free investing. Even better is that you can make the purchases with your credit card and earn cash back rewards. For me that's an extra 1% yield on the first year's dividend. It's a great way to dollar cost average into positions over time although they do have a limited selection of companies you can invest in.

Each week I plan to make small purchases in several companies to slowly build up the positions. This allows me to get some capital invested every week, for free. The valuations might not always be the best but it does help me to consistently build up my portfolio and dividend stream that will eventually allow me to consider early retirement.

My forward 12-month dividends for my Loyal3 portfolio are now up to $10.39. Adding that to my regular taxable account's forward dividends of $5,085.24 and my total forward dividends are up to $5,095.64. I'm now 92.65% of the way towards my revised goal of $5,500.

Definitely. I know for a lot of people it can be frustrating when you have just $100-200 to invest each month. With most brokerage firms that just doesn't make since due to the costs. But L3 is tailor made for those looking to invest a little bit every month.

JC,Do you know if Loyal3 does the accounting for all of your purchases, or do you keep your own? In other words, when you go to sell you will need the cost basis. Most brokerage firms do the accounting (but you probably should be checking your statements to make sure everything is correct along the way). I'm not sure about Loyal3's accounting methods, but BRK.B is calling me as a great way to go.

I'm not positive if they track all of the accounting for the purchases. All I know they have is the share numbers but I haven't looked around too much for it since I track the cost basis in my own spreadsheet. I think that brokerages are required to do the full accounting now so I'll have to look around to see what I can find. BRK.B is great and I'm looking forward to building up to at least one full share so I can take go to the annual meeting next year if everything works out.

The great part about making purchases in round $25-50 amounts... easy cost basis tracking! I believe Loyal3 keeps track of this, but do not know for certain.

Quite the range of purchases this past week JC. Getting more and more into the ease and satisfaction of regular transactions I can see. Loyal3 makes investing addicting, and is something I've felt as well since start a dividend growth portfolio there at the beginning of the year.

I agree although it does make for lots of information to track and I'm sure it'd be a pain if you have to sell after a few years to double check all cost basis' are correct. I really like L3 and since I'm looking to hold onto a bit more cash than normal due to the expected issues with Lucas when he gets here L3 allows me to consistently still invest some capital each month and diversify.

It is a bit addicting! I am having fun messing with my tracker for Loyal3. Where before I would have bypassed buying stocks because I didn't have enough money together to make it worth it because of the fees, now I just use my extra cash to buy stocks. It is great. I hope that they allow Retirement based accounts soon.

I haven't looked into retirement accounts or if that's something they're even looking into. I'll let you know if I happen to come across it. Sounds like you're the target demographic for Loyal3 and I'm glad there's an option for you to invest smaller amounts of capital each month.

Nice purchases JC. These small purchases definitely builds up over a period of time without too much action and I like it. I just started sharebuilder automatic investment plan (in addition to my scottrade account) and looking forward to building a sizeable portfolio through regular small purchases.

Disclaimer:

I am not a financial professional. I'm just a regular guy that is self-taught about investing. I am responsible for my decisions and you for yours. Any information received from this website is for informational/entertainment purposes only and should not be taken as investment advice. This site and author are not responsible for losses of any kind by readers. Investments can lose money. Please do your own due diligence and consult a financial/investment professional before investing any of your money.

There may be 3rd party ads or links to 3rd party products/services on this site or affiliate links. I may receive compensation for linking to certain products or services. This does not mean that I endorse/recommend said product or service. Recommended products/services can be found under the Reviews label.